[MUSIC] Hello, and welcome to our final session. In this final session, we will walk through some of the more common steps an organization might take to construct a performance management system. Because these systems give all employees an opportunity to play an important role in the success of a company, it is important to understand the process. So first of all, consider stakeholders. If a management system is going to work, everyone that has a stake in the company needs to be involved. This means, not only including the employees and the management, but also shareholders and investors. Because everyone has to work as a team, if one person does not agree with the system, he or she will essentially be working against the company, causing a hurdle to reach the organization's goals. Secondly, know and outline goals. If employees do not know what is expected of them, then they will not be able to contribute effectively towards the company's goals. This means that a good performance management system needs to outline the following, job duties, responsibilities, and tasks. What does the employee need to do? Also job goals, what tasks will be measured, and how they will be measured? And thirdly, explain importance, employees need to know which tasks are the most important. Which tasks should they focus on, and which tasks will help contribute to the goals of the company? And number three, communication and continued feedback, it is not enough just to tell employees what they need to do. Companies also need to continuously communicate and provide feedback. For example, let employees know how they are doing. What are they doing well? Where do they need improvement? This feedback often comes from an immediate supervisor, but occasionally, it can come from a client, other employees, and leaders of projects. It is also a good idea to keep notes and records of employees' performance. This gives the company an opportunity to refer back to the notes for clarification or reference. What are the key considerations here? Please do keep in mind a couple of considerations in order to be successful with performance management systems. First of all, management and employees need proper training and need to be aware of their roles. For example, management needs to know how to give feedback and how employees need to be trained, how to use that feedback. Another consideration is privacy. Some questions that need to be answered are, who has access to this information? Where will it be stored? And how will everyone be protected? What are the potential setbacks or problems in performance management? In performance management, there can be setbacks or problems, often known as constraints. Sometimes, no matter how hard an employee works, there are elements that are out of their control. Being able to recognize these elements can help a company make necessary changes, so that they cause the least amount of trouble. Some examples of constraints might include not enough supplies, equipment problems, and a tight budget. So with this, we now conclude the topic on performance management. Hopefully, everything you have learned here in this time will enable you to really understand what performance management is. What are its basic functions and tools, and how you can use this process to plan, monitor, and review an employee's work or better understand how you, yourself, perform at work. Thank you. [MUSIC]
